When backing awd it grinds and drags itself along causing people to stop and stare. I've even had people ask me what's up with it...one told me the 4wd was on and I should turn it off. It's really m

classic manual transmission clutch failure but is 99% of the time
the clutch MC and slave leaked out all the Dot3 fluid
or went dry and not put back fresh and BLED , putting air bubbles there. this will result in CHAOS, random shift results.
no car told no miles on car told.
2nd gear loves to fail first in the city the insane ,1>2 shift
wears out the 2nd gear synchro ring a $15 part. (fixed many me)
are your sure Reverse never grinds or balks??????

if have see to that the cracked disc inside drags just a bit.
and this tiny drag (normal is zero) cause he most worn synchro fail
and grinds.
are you always topping off the clutch MC reservoir? with DOT3> brake fluid
make sure the correct gear lube is in the box. GL3/4 ? and correct viscosity, thicker is better for worn synchro rings.
if MC fluid is good
try first spec, gear lube. (do not guess learn what the car needs)
no car told.

Check cv joints. If not might be internal transmission issue.

The clutch itself or its bearing is most likely the cause of the grinding noise.

power steering is low on fluid or going bad.

A dragging feeling or sound could be work out brake pads, parking brake shoes or a frozen brake caliper. Once the majority of the brake bad wears away, small metal blades begin built into them begin to make contact with the rotor. This starts sounding like an intermittent squeak to let you know it's time to service the brakes. If ignored, eventually the rivets the hold the pad to the metal back plate begin to grind a groove into the rotor. If deep enough, the rotor will need to be replaced - in addition to the pads. The parking brake can do the same thing. I suggest bringing the car to a brake specialty shop AND your trusted mechanic to be properly diagnosed & evaluated to get an estimate for this repair work.

have the "U" joints or cv joints checked at the front end

if you have rear calipers, they are stuck causing constant pressure even when your not applying brakes..sometimes the rubber hose will cause this same problem. i always change both hoses and calipers

did you change any tires? if the circumference of the tires are more than 1 inch difference from each this will cause the 4wd to try to engage because it sees a difference in wheel speed

check you parking brake cables migth got frozen in the on pocicion o can be the caliper bolts they are frozen too this thing don let the caliper travel free on his sit

sounds like c/v axles (front drive shafts) they will make a clicking sound normally when turning sharp and accell at the same time at slow speeds / look at the axle boots and look for grease on the inside of the front wheels leaking out the axle boots